Western Digital Approaches a Tempting Level

By

Gary Morrow

| Nov 20, 2012 | 2:17 PM EST

Western Digital (WDC) is fading again Tuesday. The stock is off more than 3%, and it appears headed for a retest of last month's spike low -- a move that would continue the extremely weak trade that has plagued the storage-device-maker since mid-August. At last week's closing price, Western Digital was down 25% from its summer highs. The modest bounce off the October lows recovered some of the loss, but that rally is now almost completely wiped out. Despite this bearish action, I believe Western Digital will soon set up as a low-risk buy for patient bulls.

For over three months now, the stock has been working through a bearish channel, which had abruptly ended a powerful breakout move that began back on July 26. The stock easily sliced through key layers of support along the way, including its 200-day moving average....216 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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